What is elimination of IC profit/loss in transferred assets in SAP FI-LC - Consolidation?

SAP Term: elimination of IC profit/loss in transferred assets

• Component: FI-LC

• Component Name: Consolidation

• Description: The following eliminations must be made in the consolidated financial statement, when an asset is transferred between two companies within a subgroup: Elimination of the asset retirement at the retiring company and the elimination of the asset acquisition at the receiving company Elimination of the calculated intercompany IC profit or loss with an effect on net income Depreciation adjustments to the IC profit or loss The IC profit or loss is calculated as the difference between the gain from retirement and the retirement book value.

Smart SAP Assistant

• Key Concepts: 
  Elimination of IC profit/loss in transferred assets is a feature of the FI-LC Consolidation component of SAP. This feature allows companies to eliminate the profit or loss that is generated when an asset is transferred between two companies within the same group. This eliminates the need to manually adjust the financial statements of both companies. 
  
  How to use it: 
  To use this feature, you must first set up the consolidation group in SAP. This includes setting up the consolidation rules and assigning the companies to the group. Once this is done, you can transfer assets between companies within the group and SAP will automatically eliminate any profit or loss generated from the transfer. 
  
  Tips & Tricks: 
  When setting up the consolidation group, make sure to double-check all of your settings to ensure that all of the companies are correctly assigned and that all of the consolidation rules are properly configured. This will help ensure that all of your financial statements are accurate and that any profit or loss generated from asset transfers is eliminated correctly. 
  
  Related Information: 
  For more information on setting up a consolidation group in SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to set up a consolidation group in SAP.